A Company Releases the Following Information

question 45

Essay

A company releases the following information:
Number of shares (in thousands) = 7500
Dividend = $0.12
Dividend yield = 0.7%
Profit (in thousands) = $1500
a.Calculate the share price
b.Calculate the market value of the firm (the total value of the firm's stock)
c.Calculate Earnings per share and the P/E ratio
d.Is this company expensive relative to its earnings?

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Definitions:

Circular Argument

A logical fallacy in which the conclusion is assumed in one of the premises, making the argument logically invalid.

Proposition

A statement that embodies an opinion or judgment.

Composition

The act of combining parts or elements to form a whole, often used in art, music, and writing.

Wood

The hard, fibrous material forming the trunk and branches of trees or shrubs, used for construction, fuel, and numerous other purposes.